SEI Investments (SEIC) Stock Forecast & Price Target

SEI Investments has demonstrated positive growth across its various segments, with an increase in the institutional investors' margin to 48.3% from 47.6%, highlighting improved efficiency and profitability. The company manages, administers, or advises approximately $1.6 trillion in assets, aided by a strong pipeline that remains robust, particularly within private banking and alternative investment opportunities. Additionally, with Stratos experiencing a 10% organic growth rate and a 40%+ EBITDA margin, SEI is positioned favorably for sustainable growth as it continues to invest in talent and technology.

SEI Investments's operating margin decreased across multiple segments, with the private banks' margin falling to 16.1% from 16.7% and a consolidated operating margin decline to 27.2% from 28.5%, indicating pressures on profitability. The company's net sales events significantly dropped to $29.2 million in the second quarter, compared to $46.6 million the prior quarter, reflecting challenges in sustaining sales momentum despite some contributions from non-operating income. Consequently, estimates for 2025 and 2026 earnings per share have been lowered, now projected at $4.96 and $5.46 respectively, which is indicative of an anticipated continuation of strained margins and ongoing investment requirements.